What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document which lets you appoint trusted people (Attorneys) to make decisions on your behalf should you become unable to manage your affairs. There are two main types of LPA: Property & Affairs, and Health & Welfare.
When should I get a Lasting Power of Attorney?
Even when we are young, we can find ourselves in difficult situations where we’re unable to make decisions for ourselves. If you’re incapacitated as a result of illness or injury, it can be invaluable to have a trusted person (or persons) to make decisions for you – what type of medical treatment you receive or how your finances and personal affairs should be managed. So really, there is no bad time to have one.
What’s the difference between a Property & Affairs, and Health & Welfare LPA?
A Health & Welfare LPA covers decisions about your personal welfare – how you live, how you are cared for and what type of medical treatment you should receive. For instance, in later life, your Attorney might be the one to decide whether you need to go into a care home, or receive care within your own home. It may be you suffer an injury which requires decisions about appropriate treatment (in conjunction with your doctor).
A Property & Financial Affairs LPA authorises the Attorney to make decisions about your property, finances and personal affairs. This could include managing your investments, paying bills for you, continuing to run your business etc.
Do I need both types of LPA?
We strongly recommend that when you take out Lasting Powers of Attorney, you take both. There’s sometimes an overlap in difficult situations: an Attorney may need to use your finances, for instance, to pay for your treatment or organise payments to a nursing home. The decision about treatment would fall under the Health & Welfare LPA, but the decision on how it should be paid for would fall under the Property & Financial Affairs LPA.
How can Kinherit help?
The forms and process for creating and registering LPAs can be complex. We talk you through all of the options, ensure that you understand the key decisions and then we pre-populate the forms for you. We then print and send the documents with detailed signing instructions, and help track your application and registration with the Office of the Public Guardian. We can also add key clauses to ensure your current financial advisor is allowed to continue to manage your assets.
If you’re taking a Will with us, or use our Hosted Planning & Handover service, you can also upload copies of your LPAs to your Kinvault, should they ever be needed. By using your Kinvault, you provide an additional back up in case your Attorneys need key information or support.